HELSINKI, FINLAND: Nokia Siemens Networks' (NSN) acquisition of key assets from Nortel Networks (NT.TO) is unlikely to be a game changer in a cut-throat telecom operators' market, even if the deal helps NSN's results and market share.

On Friday, bankrupt Nortel and Nokia Siemens NSN.UL unveiled the $650 million deal, which includes Nortel's global No 2 position in CDMA technology, and its assets in upcoming LTE technology.

The acquisition will propel Nokia Siemens into the number-two position in the CDMA market, challenging market leader Alcatel-Lucent (ALUA.PA).

But it runs the risk of distracting management at a time when the merged network businesses of Nokia (NOK1V.HE) and Siemens (SIEGn.DE) were starting to settle down.

Nokia Siemens is looking to directly benefit from Nortel's North American exposure to CDMA market, the technology which lost the battle for global dominance but still has a strong position in North America.

Analysts expect investments into CDMA networks to continue, albeit at a somewhat slower pace due to the economic slowdown, but CDMA operators are set to upgrade their networks in coming years -- many of them looking at the new high-speed LTE technology.

LTE networks are slated to be deployed in the coming years by large wireless telecommunications carriers including Vodafone Group Plc (VOD.L) and Verizon Wireless, a joint venture of Vodafone and Verizon Communications Inc (VZ.N).

Analysts said the deal would be good for NSN's financials but was too late to make a huge difference.

Richard Windsor, technology specialist, Nomura, said, "The acquisition of Nortel's Wireless infrastructure businesses makes financial sense but the strategic reason to buy the CDMA and LTE wireless business has long departed."

Verizon, one of Nortel's top customers, has already decided to have Alcatel-Lucent and Ericsson (ERICb.ST) build its LTE network instead of Nortel, since Nortel's announcement it was filing for bankruptcy protection.

Nokia shares were down 3.3 percent at 10.40 euros at 1230 GMT.

The deal will give Nokia Siemens access to Nortel's clients -- Verizon (VZ.N), Sprint (S.N), Telus (T.TO) and Bell Canada -- all of which endorsed the deal in the companies' joint statement of the deal.